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Kiwi consumers’ spending not as weak as initially feared

Kiwi consumers’ spending not as weak as initially feared

Consumer confidence is looking positive ahead of the busy festive season. According to data from eftpos and transactional services company Worldline, spending growth is continuing to grow. This data comes despite recent consumer confidence surveys forecasting a drop in consumer spending.

In the month of September, Kiwis have spent $2.92 billion, a figure that is 16 percent up from the year before and currently above the inflation rate. However, this increase is due to Covid-19 being an anomaly, according to George Putnam Head of Data at Worldline.

Excluding hospitality, regionally, through core retail merchants remains above 2019 levels in all regions, which is positive.

The media release issued by Worldline comes as outlets continue to report subdued consumer confidence.

“In spite of that meagre real growth rate, we have seen several reports in recent months that say consumer confidence is very low, so it is a pleasant surprise to see nominal retail spending still increasing – a case of the retail sector being not as bad as feared.”

Putman believes a better measure of the trend at present is to look at the quarterly results since 2019, which confirm that spending growth is occurring, at least in nominal terms.

Putnam says Worldline NZ’s consumer spending data for the latest September quarter were 14.6% above the pre-COVID levels of September quarter 2019, while the inflation rate over the same period was slightly less.